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please show fomula for Excel 0- You are a litile akrptical of the waluation you have culculatied based on the cnempetitate? PE ration, io you

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0- You are a litile akrptical of the waluation you have culculatied based on the cnempetitate? PE ration, io you decide te cakulate a PL ratio band es Fendant's nof and retention ratio. First, you need to figure out what an appepelate rate cof ref urn shauld be far the holding Pendant "s stosk. You have colletted monthy data far the exess retarn of the markef and Tendant's stook over the last 5 years ichirn briesl. Mraunirg the rink free rate is 5.2 th and you expect the seturn on the marirt te be 9 . hs over your investment herlann, what in Pendant's beta amd emected ielurn? (10.S poukts tetal? C. Prendant hen e retention ratis of 448, and an tiot of a.s. Using the requiees return calculated in part b, what would an apprepriete FI. ratis and price be loe Pendant's sfock? (10.5 points tetal) A - You are attempting to value the stock of Pendant Publishing using an appropriate price to earnings ratio. You have identified three close competitors that have price to earnings ratios of 32.4,34.5, and 28.9. If you estimate that the company you are valuing will have earnings per share of $2.63 next year, what price should you be willing to pay for Pendant's stock assuming the average earnings per share of the competitors is a good proxy for what Pendant's PE ratio should be. ( 9 points total) 8 - You are a little skeptical of the valuation you have calculated based on the competitors" PE ratios, so you decide to calculate a PE ratio based on Pendant's ROE and retention ratio. First, you need to figure out what an appropriate rate of return should be for the holding Pendant' 's stock. You have collected monthly data for the excens return of the market and Pendant's stock over the last 5 years (eiven below). Assuming the risk free rate is 5.2% and you expect the return on the market to be 9.3% over your investment horizon, what is Pendant's beta and expected return? ( 10.5 points total) C. Pendant has a retention ratio of 44%, and an ROE of 0.4%. Using the required return calculated in part B, what would an appropriate PE ratio and price be for Pendant's stock? (10.5 points total) 0- You are a litile akrptical of the waluation you have culculatied based on the cnempetitate? PE ration, io you decide te cakulate a PL ratio band es Fendant's nof and retention ratio. First, you need to figure out what an appepelate rate cof ref urn shauld be far the holding Pendant "s stosk. You have colletted monthy data far the exess retarn of the markef and Tendant's stook over the last 5 years ichirn briesl. Mraunirg the rink free rate is 5.2 th and you expect the seturn on the marirt te be 9 . hs over your investment herlann, what in Pendant's beta amd emected ielurn? (10.S poukts tetal? C. Prendant hen e retention ratis of 448, and an tiot of a.s. Using the requiees return calculated in part b, what would an apprepriete FI. ratis and price be loe Pendant's sfock? (10.5 points tetal) A - You are attempting to value the stock of Pendant Publishing using an appropriate price to earnings ratio. You have identified three close competitors that have price to earnings ratios of 32.4,34.5, and 28.9. If you estimate that the company you are valuing will have earnings per share of $2.63 next year, what price should you be willing to pay for Pendant's stock assuming the average earnings per share of the competitors is a good proxy for what Pendant's PE ratio should be. ( 9 points total) 8 - You are a little skeptical of the valuation you have calculated based on the competitors" PE ratios, so you decide to calculate a PE ratio based on Pendant's ROE and retention ratio. First, you need to figure out what an appropriate rate of return should be for the holding Pendant' 's stock. You have collected monthly data for the excens return of the market and Pendant's stock over the last 5 years (eiven below). Assuming the risk free rate is 5.2% and you expect the return on the market to be 9.3% over your investment horizon, what is Pendant's beta and expected return? ( 10.5 points total) C. Pendant has a retention ratio of 44%, and an ROE of 0.4%. Using the required return calculated in part B, what would an appropriate PE ratio and price be for Pendant's stock? (10.5 points total)

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